In recent years, the vacation rental industry has grown significantly, transforming the way people travel and find accommodation. Traditional hotels and resorts now share the market with privately-owned homes, apartments, and unique lodging options, which are often rented out to travelers seeking a more personalized experience. Vacation rentals are especially popular among families, as they tend to offer more space and amenities—such as full kitchens and private pools—at competitive prices.
Online platforms like Vrbo, Booking.com, and Airbnb have made it easier for both travelers and property owners to participate in this expanding market. However, while short-term rentals can provide financial benefits to homeowners, their broader impact on communities needs to be carefully managed. A well-crafted covenant on short-term rentals allows HOAs to strike a balance between supporting homeowner interests and preserving the community’s quality of life. Such proactive measures help ensure a safe, stable, and harmonious neighborhood environment.
Short-term rentals are among the most highly regulated segments of the real estate market. In addition to federal, state, county, and city regulations, homeowners’ associations (HOAs) should establish their own governing documents.
Colorado’s Division of Real Estate (DRE) within the Department of Regulatory Agencies (DORA) presented a position statement on short term rental restrictions. We highly encourage all Boards of Directors to carefully consider their recommendations.
While legal guidance is crucial, an experienced association management firm can assist HOA boards in drafting Covenants, Conditions, and Restrictions, along with a comprehensive set of rules to protect your community. Contact The Summit, HOA Management for more information.